WHAT IS A CDFI?

A Community Development Financial Institution (CDFI) has a primary mission to promote housing and business development.  The U.S. Department of Treasury established CDFIs to facilitate increased access to capital and stimulate local economic growth by expanding lending and investment services within underserved markets.  By providing basic financial services to individuals left out of the economic mainstream, CDFIs are instrumental in creating financial stability, while boosting neighborhood development.  There are approximately 600 CDFIs operating in the United States.

CDFIs also provide ways for individuals and institutions to participate in the revitalization of economically distressed communities.  They help:

• Banks meet their Community Reinvestment Act obligations

• Individuals give back to the community in which they live and work

• Socially-conscious businesses to fulfill their charitable missions.

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